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ISLAMABAD: The Special Investment Facilitation Council (SIFC), on Monday, unveils an ambitious plan to boost the semiconductor industry in Pakistan amid educational reforms and fiscal milestones.

In a bid to attract multibillion-dollar investments, the SIFC has announced its comprehensive strategy to develop the semiconductor industry in Pakistan.

After extensive research and testing, the plan aims to leverage Pakistan’s abundant, skilled, and cost-effective human resources to capitalise on the global trillion-dollar semiconductor industry.

The initiative will initially focus on the design aspect, with future plans to expand into manufacturing and testing, positioning Pakistan as a prime destination within the semiconductor value chain.

This ambitious endeavour is expected to significantly contribute to Pakistan’s economic growth and prosperity, opening up new avenues for development and investment in the country.

In tandem with unveiling its ambitious plan to bolster Pakistan’s semiconductor industry, the SIFC underscores the pivotal role of education in shaping a skilled workforce aligned with global demands.

Acknowledging Pak-istan’s burgeoning population, the SIFC emphasizes the urgent need to align the education system with international market requirements. The initiative aims to bridge the gap in technical and vocational training, recognizing skilled human resources as a cornerstone for both foreign collaboration and domestic export.

However, amid suboptimal technical training and declining basic education standards, challenges persist. To address these issues, SIFC collaborates with government bodies at all levels to enhance education policies and standards, fostering a conducive environment for technical and vocational training.

Despite these efforts, Pakistan’s education sector grapples with significant challenges, including a staggering 26.2 million out-of-school children—the highest globally—and alarming rates of childhood stunting. The Annual Status of Education Report (ASER) - 2023 further highlights a decline in learning outcomes, underscoring the urgency for comprehensive reforms.

Recognising education as a national priority, SIFC advocates for a “Whole of the Government Approach” to uplift the population, transform them into skilled assets, and enhance global competitiveness.

Moreover, the SIFC’s engagement extends to mineral sector reform, with plans to establish a dedicated Mines and Minerals Division at the federal level. This initiative aims to harness Pakistan’s vast mineral potential through streamlined policies and regulations, fostering ease of doing business and attracting foreign investment.

In parallel, the Federal Board of Revenue (FBR) surpasses revenue targets, collecting Rs6.710 trillion in the first nine months of FY24. This achievement puts the government on track to meet its FY24 revenue collection target of Rs9.415 trillion, signaling a 30 per cent increase from the previous fiscal year. To sustain this momentum and elevate the tax-to-GDP ratio to 15 per cent, comprehensive FBR reforms are imperative, requiring resolution of litigation hindrances.

As Pakistan navigates its economic trajectory, SIFC’s multifaceted approach underscores a concerted effort to address educational shortcomings, enhance industry competitiveness, and achieve fiscal milestones, positioning the nation for sustainable growth and development.

Copyright Business Recorder, 2024

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Umer Apr 02, 2024 06:35am
SIFC has been planning since last year without any substantial increase in foreign investments so far. Pakistan can focus on training chip designers which does not require a production facility.
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